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Apparently they only operate in Colombia in South America and interestingly they are also in the Texas Permian - if fracking it's noteworthy that the Colombian Government and some operators have been keen to push forward with fracking. Who knows what they expect from the deal but they are no mugs and equipped for everything.

This is what they say about their Colombian operations:

"Occidental has been an active investor in Colombia for more than four decades. Currently, Occidental has operations in the Llanos Norte Basin in the Department of Arauca and in the Middle Magdalena Basin in the Department Santander.

In the Llanos Norte Basin, Occidental operates the giant Caño Limón Field, an Occidental discovery that enabled Colombia to become an oil exporter after many years as a net importer. More than 1.4 billion barrels of oil have been produced at Llanos Norte since Occidental discovered the Caño Limón field in 1983.

In the Middle Magdalena Basin, Occidental has a working interest in the La Cira-Infantas (LCI) area, where it has coordinated an enhanced oil recovery (EOR) project in collaboration with Ecopetrol, Colombia's state-owned oil company, increasing LCI's production and reserves, and a working interest in the Teca area. In 2016, Occidental launched a thermal recovery pilot in the Teca-Cocorná Field to more easily extract heavy crude. The pilot is a collaborative effort with Ecopetrol, and is producing with better-than-anticipated results.

Occidental's Chipirón Field, also in the Llanos Norte Basin, has been recognized by Asociación Colombiana de Ingenieros de Petróleos (Acipet) for innovative efforts to safely produce oil and gas in a remote area of Colombia while preserving the environment."

Is a completely different kind of outfit from ONGC who frustrate the hell out of everyone, I suspect even their own government.

The deal is a great coup, a subsidiary of a world class outfit believes 50% of our secondary licence blocks is potentially worth multiples of its agreed investment, $93.25m.

They're not investing, in Colombia simply to get their money back, for success it must be big scale to be meaningful and indeed transformational to Amerisur.

Besides the financial contribution, we should not underestimate the huge value of having a multi-national helping determine opportunities and a drilling programme - by any definition they a top-rate.

I've taken a look at the parent outfit's website and this caught my eye:

"In 2018 Fortune magazine ranked Occidental No. 1 in the Mining, Crude-Oil Production category in its annual World's Most Admired Companies survey. This was Occidental's 10th time to achieve this top ranking, which we have received every reported year since 2008.

If who you partner with matters, then the news could not be better

Unfortunately the oil price is showing weakness today, although it is meaningless to the announced deal the market background does effect trading.

The SP performance today is OK, we are only part way through the day and the SP will be strong in the coming sessions and weeks IMO.

Looks like 2018 will end well after all.

The big buyer from yesterday should be investigated, that buyer will most likely be selling in the coming sessions and should not get away with what looks like insider trading.

They have seen around £250000+ return in a few hours potentially a lot more at the expense of other shareholder and also possibly brought forward an announcement from Amer that might best have been released on Monday.

IMO it is plain wrong and any leak may not have come from Amerisur, there would have been lots of parties involved in negotiations so we would be wrong to attach any blame to Amerisur - who are not usually leaky with news.

It is going to take time to clear all the cheap shares that have been bought recently, unless someone buys big chunks and sticks to them,

The MM's will have a field day today, and volatility attracts traders who are ibn and out sometimes several times a day for a small % gain, perhaps to make enough money to buy a telly on black Friday.

I shall be sitting on my hands for a few weeks now as the news sinks in to the market and the result of Indico-1 hopefully boosts the SP further.

The only thing missing from the equation, to tip the balance decisively is a development/drilling plan for the T-Sands.

I expect lots of volatility today, some will look to make money on the swings, but for the patient this should be a slow burner over the coming sessions as professional investors/ institutions see the opportunity and more news emerges, including press coverage.

50cc - give it a rest, we went down that route a few sessions ago - no one with any sense believes that drivel anymore. You won't panic anyone today except shorters - if it includes you perhaps you are panicking.

We wait for the production update to determine what production is.

pickedpeck - you say "Can we please now shut up about the BoD? "

I'm overjoyed by the news, best RNS in years - literally.

But the answer to your question is NO, the BoD deserve to be called out for failings, they have performed atrociously on the operational front, and brilliant though the deal may be, unless they pull their finger out operationally we will miss a golden opportunity. The last thing we want now is now them to sit back and congratulate themselves - they need to step up their efforts operationally Not the answer you're looking for I guess, but it's so important for anyone that plans to hold shares through to full fruition (completing programmes), IMO today can be considered as the first major step in recovery..

Looks like an incredible deal.

Amerisur, upscaling with a huge multi-national partner.

OBA capacity could now accelerate apace with associated revenue and 50% of a big deal is better than a development that takes forever to come to fruition.

Now we should have serious spare cash to spend on the other blocks as our commitment is diminished on the others - best news in years.

I expect a serious hike in SP today, RH control is history.

I wonder if the BoD's hand was forced to release the RNS by yesterday's trades. news could have got out.

It doesn't matter they have been worked in to accommodate someone.

Maybe all the weakness was contrived to fix someone up, or a short closed

I could begin to know - but one thing is for sure it's positive and will maybe clear the decks.

The RNS yesterday was the best we've seen for ages, good news all round.

But wrt Mecaya, that is an exceptionally good transaction - not only is there a proved reservoir we also have a well which can be turned to production, presumably at very low cost and should cover the entire cost of the transaction. Notice, below the company's website says Mecaya-1 well flowed at 782bpd and was drilled almost 30 years ago. What a waste, hopefully Amerisur will do better than previous operators.

Notice 782bpd and the RNS states 682bpd, have we lost 100bpd or are they playing it down?

RNS: "The Mecaya-1 well, drilled in 1989 produced 682 bopd of 27 degree API oil with 0% water on test from the M2 reservoir."

0% water, great sign IMO where water cut/management is a concern for every operator.

The company stresses the value of having full control, that should not be underestimated as having partners inevitably slows or even prevents progress.

What is very interesting is the potential oil that the block may hold as it is yet another area that has not been fully explored

Since buying into the block 2017 I assume they have been working on the environmental permissions, maybe even presented the case to get Mecaya-1 into production and presumably drill more wells.

Any one of the unexplored blocks in Amnerisur's portfolio could be superior to Platanillo, they just need to get the drill bit turning as someone said earlier

The company's website says:

"Amerisur acquired 58% working interest in Mecaya in March 2017 from Pacific Exploration & Production (now Frontera Energy) and will be Operator. The Mecaya block is in a faulted zone, with potential for traps similar to Platanillo and has proven oil, with the Mecaya-1 well drilled in 1989 by ECP flowing at 782 BOPD.

The Company commissioned an evaluation of reserves at the Mecaya block related to the well Mecaya-1 from Petrotech Engineering Ltd. 1P reserves were certified at 0.31 MMBO and 2P reserves at 0.45 MMBO to Amerisur on a working interest basis of 58%.

Latest Developments
• It is planned to present an application for environmental licensing and then perform an LTT of the well Mecaya-1 "

I'm not, our enemies won't give up the fight unless they get seriously burned and see no potential in continuing.

Notice someone at the end of the day chucking a few thousand shares in at 9.5p to give the appearance of weakness - it would be laughable if it didn't work in creating the perception of no support.

Oil is up today and I hope the tide has also turned for Amer, as I said earlier the tone of the RNS was far more positive.

When this eventually recovers as it surely will, it could occur very quickly.

Rocket - they are only in a closed period if they know something that we don't or around result announcements (same thing).

Some companies are continuously drilling, and most companies are doing something that could influence the SP, so it doesn't make sense unless they know something price sensitive.

bigsmoke - you're actually teased out something very important there mate.

Testing the OBA at capacity, even with oil from other operators, proves that the transport route is good (de-bottlenecked to 9000) so Amerisur can invest in expansion freely in the certainty that they can clear the oil.

All pretty obvious, but they didn't do it initially and IMO it's vital to avoid future shocks.

It's worth noting that the 9000bpd is the minimum agreed capacity not the absolute maximum, if spare capacity is available I assume the pipeline operator will allow Amerisur to pump.

If they buy local production from other operators I guess they could create a nice little earner with no risk.

I sense a different tone to the RNS than previous down in the mouth offerings, perhaps they've finally woken up and realise they are in a fight.

About time too.

Good stuff, but critically no mention of a significant drop in production.

A significant drop would surely have to be reported when an update is provided under AIM rules - looks like shareholders have been misled.

Amerisur have their own problems for sure but yesterday and the last few sessions weakness in down to one thing, a falling oil price and associated correction in oil company share prices Apparently over $1trillion wiped off combined values.

Our enemies (and make no mistake some posters on this BB are enemies looking to see you lose your money) are simply taking advantage, all the warnings and messages of concern are to generate distress.

Our specific problem is our BoD who simply seem to shrug their shoulders and continue drawing salaries, there's no evidence of any efforts to defend the company, no evidence of a coherent strategy. We need the BoD's support to restore confidence then as the oil price rises the SP any benefit.

The oil price found support yesterday after a crude oil draw was reported. Above all though the underlying problem is Donald Trumps erratic behaviour. Says sanctions are going to be harsh then relents, allegedly asks the Saudi 's to increase production and suggests action to reduce price - IMO the weakness is politically motivated to make 1 person look good to his supporter base, it is farcical but political norms no longer apply. There are lots factors but the way they are presented dictated reaction. Unfortunately "sh*t happens" and control is not always possible, so the oil price could spike despite the best endeavours of DT and mates

Those in control (and they are now in control) will move to stabilise the oil price in the range they want in the coming days and weeks, I reckon around $70/barrel .

Very deramper out working to reassure each other yesterday. Sadly some shareholders lining up to swallow whatever drivel they suggest.

Surely no one should be stupid enough to believe totally unverified figures for production from an unknown source.

Bloodbath - why on earth would anyone sell based of a BB posts trying to cause hysteria. some of them simply trying to get a cheaper buy in price.

bigsmoke - your comment ""Management need to get a move on and support the share"

Absolutely, or explain why they are simply sitting on their hands when there clearly is a problem and it's not just simple market forces as the know only too well IMO.

Eldo - there has been no ramping, at least in any consistent way, the problem here now is the serial derampers - of which you make up the numbers. You are merely trying to create the narrative that this share is being ramped, hence overvalued - it is ridiculous

You know full well no one has retreated or gone into shock since Friday, that's wishful thinking, and you make assertions and scare-monger for your of benefit - the truth is that Indico1 may well fail to find hydrocarbons but the chances of success are very good. If it's a fail the SP will fall of course, but there are entirely independent operations that underpin the company's value and then some, oh and then there is the cash.

IMO the upside outweighs the downside, and I suspect you will soon have changed your stance and be saying the same else have disappeared to taunt other investors.

The SP weakness is being compounded by the oil market which is showing ongoing weakness and impacting all oil companies - news from Amer and a change in sentiment for oil can reverse things very quickly.

A share buy-back programme is long overdue - Gran Tierra RNSed more share bought back this morning - Amer should be made to give an explanation of their actions when most other operators appear well ahead in their responses at the next AGM.